The Interim Director of Corporate Services reported that, as part of the 2012/2013 Budget Consultation process, the Cabinet had requested Overview and Scrutiny Committees to consider the functions within their portfolio and offer suggestions as to how to close the estimated £25m budget gap and limit any Council Tax increase in 2012/2013. The Interim Director gave a presentation upon the financial projections for the Council and upon the major budget issues and challenges faced by Economy and Housing. The Department had a budget of £21,378,200, with £9,630,000 within the Capital Programme for 2012/2013 and he set out the key budget challenges, which included –

·  a significant reduction in external Community Fund resources, due to end March 2012 - £1.2m to support Homelessness Teams and Private Sector Housing Teams from the Community Fund and carry over of HMRI funds;

·  a shortfall of £500k in income target against actual income for Development Control;

·  a £740k in year grant to tackle worklessness that will not be received in 2012/2013, which will impact on the delivery of worklessness schemes;

·  a loss of HMRI and WNF funds totalling £20m in 2011/2012.

The Interim Director provided also a departmental overview and highlighted the key economic indicators and external challenges, including the need to compete globally by working with strategic partners to attract inward investment.

The Chair thanked the officers for the detailed information contained within the report and sought the views of Members as to whether the Committee should engage with the process of offering suggestions as to how to close the budget gap or, alternatively to maintain the impartiality of the scrutiny function and await proposals to be brought forward from the Cabinet. The Labour Group spokesperson and other Members expressed the view that it was important for scrutiny committees to assist the executive in order to limit any Council Tax increase in 2012/2013. He went on to request that information be provided to Members in relation to planning fees and whether it would be possible to delay any of the schemes presently included within the capital programme.

The Conservative Group spokesperson and other Members commented that the role of scrutiny was to scrutinise decisions taken by the executive and suggested that savings options already notified to portfolio holders by Chief Officers should be shared with Overview and Scrutiny Committees, to enable scrutiny to be undertaken in relation to those proposals. In response to further questions from Members in relation to the planning income target for 2011/2012, the Interim Director commented that an under recovery on fees was anticipated and he agreed to send a note to Members by email, setting out the current position.

At the request of the Chair, the Cabinet Member for Housing and Community Safety addressed the Committee and commented that the Leader of the Council wished to approach the budget shortfall differently to last year. He did not wish an unelected task force to make recommendations and believed that Members of scrutiny committees were best placed to identify where savings  ...  view the full minutes text for item 12